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I think that, every time you saw the word EBITDA, you…

“I think that, every time you saw the word EBITDA, you should substitute the word "bullshit" earnings.” quote by Charlie Munger
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“I think that, every time you saw the word EBITDA, you should substitute the word "bullshit" earnings.”

Charlie Munger

About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

EBITDA is often used to mask poor performance, so replace it with a blunt term to see reality.

In simple terms: EBITDA can hide bad results.

Key Takeaway

Question financial metrics critically.

Themes

finance accounting transparency

Mood

skeptical critical

Type

cautionary analytical

When to use this quote

  • investor analysis
  • corporate reporting
  • budget reviews

Key Concepts

valuation earnings quality

Questions to Reflect On

  • Do you rely on EBITDA without scrutiny?
  • How can you verify earnings quality?
A Different Perspective

EBITDA may still be useful when used correctly.

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